Archives Trade News

Clothing wizard Otara ‘Embarks’ on animal care mission

Daily News / Wednesday, 25 April 2007

Ruwanthi Abeyakoon

ANIMAL RIGHTS: Gaining a degree in biology from an American university, she dreamt of herself as a veterinary surgeon but life opened up a new door for her. Today she has emerged as a dynamic businesswoman and runs the most fashionable department store in town.

Chief Executive Officer of Odel, Otara Gunewardene went onto reveal the mysteries in the fashion world at her mall.

Beginning in a little room on Fife Road in 1988 over the years Odel has captured the hearts of many.

However a spark of Otara’s dream remains in her and her love for animals reflects in her business. ‘Embark’ the dog sterilisation project that was launched recently confirms her dedication towards the betterment of animals. ‘Embark’ is aimed at educating and creating awareness of many animal related issues that are often neglected. More>>

Economy insulated from conflict

Daily News /Tuesday, 24 April 2007

Singaporean news agency says Lanka attracting record investments :

SINGAPORE: Sri Lanka has recorded its highest economic growth rate in 30 years despite the prolonged ethnic strife mainly due to the theatre of conflict being far removed from the country's economic epicentre, according to Bloomberg, a Singaporean news agency.

"This is a conflict that the country has learnt to live with," the article quotes Agost Benard, credit analyst at Standard & Poor's in Singapore as saying.

"Businesses still invest, factories still produce. The main reason is because the conflict is localised," he told the agency .

According to the article Sri Lanka, which is also recovering from the December 26, 2004 tsunami, saw its gross domestic product grow 7.4 per cent last year, buoyed by a 10 per cent expansion in the Western province, the home of the textile and clothing industries, the biggest export earners.

The Central Bank of Sri Lanka maintains its 2007 growth forecast of 7.5 percent. Manufacturing, which includes tea processing, rubber-based products and construction, grew 7.2 per cent in 2006 from a year earlier, while services, such as cargo handling and telecommunications, expanded 8.3 per cent. Sri Lanka's garment industry, responsible for about 4 percent of the economy, supplies for brands such as Gap Inc., Banana Republic and Marks & Spence Group Plc.

According to the article Sri Lanka last year attracted a record overseas investment of US$ 600 million, mostly from garment makers and telecommunications companies in Colombo, which is also located in the Western province. More>>

Clothing wizard Otara ‘Embarks’ on animal care mission

Daily News / Wednesday, 25 April 2007

Ruwanthi Abeyakoon

Chief Executive Officer of Odel, Otara Gunewardene went onto reveal the mysteries in the fashion world at her mall.

Beginning in a little room on Fife Road in 1988 over the years Odel has captured the hearts of many.

Colombo Tea Auction buoyant with Middle East strong demand

Daily News / Monday, 23 April 2007

TEA MARKET: The Colombo Tea Auction witnessed a quantity of 5.3Mkg being sold this week, of which 1.1Mkg were Ex-estate teas. On the whole the market was buoyant due to the loss of the last sale as well as some confusion with regard to the sale scheduled for April 30.

Tippy Teas were up this week due to strong demand from Iran and Dubai as well as continued interest from the CIS. Iran in particular was active on Tippy varieties as a result of the shortage of very good quality teas in the market. Additionally, the buyers were aware of a ‘rush crop’ that will flood the market in the coming weeks and widen the price parity between the different grades of quality.

Demand for Pekoes’ shot up this week due to strong interest in the small-made ‘shotty’ varieties. Saudi Arabia was at the frontline of the buying thereby pushing up the ‘wiry-leaf’ teas like OP1s and BOP1s.

However, the ‘flaky leaf’ teas were a little shaky, indicating perhaps that the demand for this type might fade in future sales. Week-on-week, the currency changed a tad, moving from Rs. 109.35 (buying) to Rs. 109.70 against the US dollar.

However, the dollar was up against the ropes with the European currencies as the UK Pound once again breaching the two dollar mark. More>>

Exporting ‘Mahaweli Kalape’ banana commences

Daily News / Monday, 23 April 2007

EXPORTS: The first consignment of ‘Dole Banana’ the world’s no. one brand was exported recently to the Middle East, Philippines and Japan.

The first consignment consisted of 10,000 cartons each containing 150 bananas - a special variety grown in the Mahaweli Kalape with know-how, technical and financial division.

Dole Stanfilco is one of the largest organisations in fruit and vegetables with its world headquarters in the USA and Asia headquarters in Philippines.

When Kingsley T. Wickramaratne was the Governor of the Southern Province, he invited delegates from Stanfilco Asia, Philippines and USA, enabling the Mahaweli Kalape farmers to export a new variety of Anamalu which crop turns out every eight weeks.

Two experts from Stanfilco Dr. Anaceleto B. Guevara and Dr. Rosella D. Gamtan a soil expert arrived at the Governor’s Office, Southern Province.

Wickramaratne had a very detailed discussion to develop a programme of action. Governor Wickramaratne entrusted the responsibility of carrying out the programme to the Agriculture Minister of the Southern Province Hemal Gunasekera and Trade Minister U. G. A. Ariyatilake and to several others. More>>

Govt. commends eminence of Southern businessmen

Daily Mirror/Thursday, April 19, 2007

A ceremony was held recently at Matara Lalitha Hotel by Matara District Chamber of Commerce and Industry to pay compliments on the achievements of Eminent Entrepreneurs of Sri Lanka (2005) eight out of ten of whom are from Matara district.

Proprietor of Ruhunu Product Industries P. Ruhunage won an All Ceylon Gold Medal for Medium Scale Industries and seven others won the other awards.

Addressing the gathering Cultural Affairs Minister, Mahinda Yapa Abeywardena said that the people in the south are always eminent.

“Out of them too the business community has excelled” he said and added that “we are still not making the best use of the foreign market and hence foreigners are exploiting our resources, he said.

Forty years ago a payment of one and a half Dollars was made for a Kilogram of Tea. Even today the same amount is being paid. We are still unable to go beyond that step, the minister said.

Every one is not endowed with business knowledge and talents. What we should do is to help and enourage those who possess such knowledge and abilities. More>>

Thai training for local jewellery manufacturers

Daily News /Thursday, April 19, 2007

Anjana SAMARASINGHE

TRAINING: Thailand has agreed to provide necessary training for local jewellery manufacturers and pledged to participate in international gem and jewellery fairs in Sri Lanka.

Senior officials of the National Gem and Jewellery Authority (NGJA) told the Daily News, this was revealed during the fact finding mission to Thailand and Singapore, headed by the Enterprise Development Minister Mano Wijeratne.

This will be a train the trainer programme. Under this program local trainers in gem cutting and jewellery manufacturing will complete training in Thailand.

The Ministry expects to implement the project in the near future.

During the mission to Thailand the delegation met members of the Thailand Jewellery manufacturers Association and Gem Traders’ Association and Thailand Deputy Minister of Commerce. Thailand also agreed to have National pavilion at the ‘Facets Show’ held in Colombo every year, he said.

During the discussions with the Gem and Jewellery industrialists in Singapore Sri Lanka agreed to have a Sri Lankan pavilion at the Singapore International Jewellery Show which will be held in August. More>>

Ceylon Chamber to drive Millennium Development Goals

Daily News /Thursday, April 19, 2007

INITIATIVE: The Ceylon Chamber of Commerce (CCC) has launched an accelerated drive to spur the adoption of projects targeting the UN Millennium Development Goals among its membership.

The CCC which groups together a vast cross section of Sri Lanka’s corporate sector has been instrumental in promoting Corporate Social Responsibility among its membership by encouraging CSR practices as a core business function.

In its latest initiative, the Chamber has formed a CSR Sub Committee with high level representation from the Top Ten Best Corporate Citizens of 2006 to focus on helping Sri Lanka achieve targets set under the eight Millennium Development Goals.

The Millennium Development Goals or MDGs form a blueprint agreed to by all the world’s countries and all the world’s leading development institutions, to galvanise efforts to meet the needs of the world’s poorest communities by 2015.

The eight MDGs promote poverty reduction, education, maternal health, gender equality, and aim at combating child mortality, AIDS and other diseases. More>>

Tea auctions this week

Daily Mirror /Thursday, April 19, 2007

Sale No.15 consisting of 5.3 m/kgs was concluded this week.
Ex Estates comprised of a slightly larger volume of 1.1 m/kgs this week. Offerings from most planting districts were irregular and lower to previous. Hence, in keeping with quality prices too declined accordingly. Western BOPs were easier Rs.20-30 per kg with the plainer poor leaf sorts declining further. Western BOPFs too declined Rs.50-60 per kg and at times a few high priced teas declined further. It is also evident going by the price structure at today’s sale BOPs attracted better demand and now command a premium over the corresponding BOPFs contrary to the levels that was evident in the recent past. Nuwara Eliyas together with Uva/Udapussellawas declined fairly sharply whilst it was also evident that the poor leaf plainer varieties were difficult of sale. There was less activity from UK, Japan together with the Continent compared to the preceding sale. CIS, however, operated on a wider selection of teas. More>>

Launch of express mail service export of gems and Jewellery

Daily Mirror /Wednesday, April 18, 2007

In according to a long-standing request by the Sri Lanka Gem and Jewellery Association, the National Gem and Jewellery Authority together with the Sri Lanka Postal Authorities, the Sri Lanka Customs and the Sri Lanka Insurance Company inaugurated the Expeditious Mail Service – EMS recently which will ensure the expeditious dispatch of Sri Lanka gems and jewellery world wide.

The National Gem and Jewellery Authority Chairmen Hasitha Tillekeratne, Superintendent of International postal services Charls Chandrawansa, Assistant Superintendent of Urban Postal Service J.N. Nawaratne, Superintendent of Customs R.D.A.M.G. Lavis, Former Vice President of Sri Lanka Gem and Jewellery Association Anura Wijemanne, Vice President Donald Perera and Executive Committee Member Cassim Carder participated at the inauguration ceremony.

According to National Gem and Jewellery Authority Chairman, Hasitha Tillekeratne the newly-established EMS is a part of the development programme launched on the initiative of Enterprise Development and Investment Promotion Minister Dr. Sarath Amunugama and Enterprise Development Minister Mano Wijeratne. More>>

Govt. to initiate action for increased tea export to Pakistan – DM

Daily Mirror /Wednesday, April 18, 2007

Plantation Industries Minister D.M. Jayaratne said that steps would be taken to increase the amount of Tea exported to Pakistan. At present it stands at 2.6% earlier the value was 23%.

Due to the increase in prices of Sri Lanka Tea, Kenya is playing a major role in the Pakistani Tea market. They export about 70.22% tea to Pakistan said Director General of Sri Lanka Tea Board, H.D. Hemaratne Pakistan has bought US $ 200 million worth tea during last year.

Minister Jayaratne said that to develop tea sales in Pakistan a Tea Centre should be established in Karachchi in the middle of the year.

A discussion was held to increase market facilities for Sri Lanka Tea and increase the earning of foreign exchange at the parliamentary complex with Export Development and International Commerce Minister G.L. Pieris. Minister Pieris said that Sri Lanka Tea should be good quality and since the cost of production has risen the sale price of our tea has increased and the price has risen beyond the buyers of Pakistan. A six member committee to develop Tea sales in Pakistan was appointed and the committee was asked to submit its report within two weeks. More>>

Tea industry still on top – Tea Board

Daily Mirror /Wednesday, April 18, 2007

by Palitha Ariyawansa – Badulla

The one hundred and fifty year old Sri Lanka tea industry is still occupying the top most place in the production of qualitative Tea but it has faced a number of challenges, Chairman of the Sri Lanka Tea Board, Lalith Hettiarachchi said at the ceremony held at Badulla Provincial Council Library Auditorium for the award of Ceylon Tea quality one star certificates.

Mr. Hettiarachchi who participated as the chief guest, awarded certificates to the superintendents of Hapugahawatta, Avon Lee Hill Southern, Green Field and Grain Estate for the production of quality Tea. Speaking further, Mr. Hettiarachchi said that Sri Lanka’s Tea industry has to face a number of challenges with Kenya and Vietnam having joined the tea Industry.

“The government is unable to provide all the assistance to maintain the high quality standard of tea. It is the responsibility of estate administrators to bring the estates to the profit earning level. Challenges of increasing wages, fuel and electricity bills, and increasing price of fertilizer can be met with success by maintaining the quality of tea, and by producing quality tea to the world market” he said. More>>

Sri Lanka, Kerala chambers of commerce sign MoU

Daily Mirror /Wednesday, April 18, 2007

Kochi, Apr 17: The Kerala Chamber of Commerce and Industry today signed a Memorandum of Understanding with the Federation of Chambers of Commerce and Industry of Sri Lanka to step up cooperation in trade, economic and industrial activities.

Signing the MoU at a function here, KCCI president E S Jose and FCCISL president Nawaz Rajabdeen hoped that it would help to establish effecive means of communication between the companies and private business organisations of both sides.

Present at the ceremony were Kochi Mayor Mercy Williams, Member of Parliament Sebastian Paul, former Kerala tourism minister K V Thomas, MLA, and Mr H M B Herath, Minister (Commercial), in the Sri Lanka Deputy High Commission, Chennai.

In a special address, Mr Deshabandhu Macky Hashmim, former president, SAARC Chamber of Commerce and Industry, said Sri Lanka provided a very conducive environment for promoting investments and exports. More>>

Akbar Brothers feted as one of six largest exporters

Daily Mirror / Tuesday, April 17, 2007

Minister of Export Development and International Trade, Prof. G.L. Peiris, awarded Special Trophies to six of Sri Lanka’s largest exporters for their outstanding performance in the year 2006, at a ceremony held at the Sri Lanka Export Development Board recently. The six companies are Loadstar, Brandix, Blue Diamonds, Smart Shirt, Omega Lines and Akbar Brothers Akbar Brothers Group of Companies is the largest exporter of tea with an export volume of 44 million kilograms and foreign exchange earnings of Rs.15 billion in 2006. The Group also ranks as the largest exporter of value-added consumer tea packets and teabags totaling 24 million kilograms in 2006. The AKBAR and ALGHAZALEEN Brands owned by Akbar Brothers Ltd. are leading international brands of Pure Ceylon Teas and are marketed in over 75 countries worldwide. Here Akbar Brothers Chairman Akbar Ali (on right) with Minister Peiris at the presentation. More>>

Export marketing plan for Sri Lanka's apparel Industry for EU market Daily News / Tuesday, April 17, 2007

A.H.H. SAHEED - Chartered Marketer

INTERNATIONAL BUSINESS: The EU is the world's largest market and a prime location for international business. It is no longer seen as a fragmented and divided continent but more as a single growing market.

The international borders between member states have ceased to exist and the EU's trade policy regime is now valid to 27 member states, including Bulgaria and Romania.

EU market is large consisting of 480 million people.

Market Access

In the EU market, there are numerous market access requirements, which have a major impact on the ability to exports. Legislative and non-legislative requirements are given below. More>>

Tea industry’s competitiveness in cost and quality need strengthening

Daily News / Tuesday, April 17, 2007

Dr. N. YOGARATNAM - Consultant/NIPM

PLANTATION MANAGEMENT: The history of the progress of plantation management efforts in the tea sector in Sri Lanka can be classified into three broad phases over more than a century.

The early phase under the colonial initiatives lasted till the nationalization of estates in 1975, the second phase under the native control, the “post-nationalization phase” was until 1992 and the third phase the “post-privatization phase” is now more than about 15 years with active participation of private sector in the management of State owned tea plantations.

The approach during the colonial past had been for effective price stabilisation strategies for a given Cost of Production (cop). The “post-nationalisation” period had its typical public sector care-free style of management filled with politically acceptable and beurocratic agendas.

Despite differences among the plantation management companies, a common feature since the beginning of the post-privatisation phase has been efforts to capitalize on available opportunities for minimizing unit cost of production and exploring potential outlets for increasing the net income per unit area. More>>

Tea surveillance: 04/04/2007

Daily News / Tuesday, April 17, 2007

COLOMBO: A higher quantity of 5.07MKg was traded this week at the Colombo Auction of which 1.03MKg were Ex-estate teas.

The key feature of the sale was a strong demand for quality teas that was spurred by the fact that the next sale is two weeks away. Consequently, shippers keen to meet their commitments were active all round, compensating for the sale lost to the festive season.

The Pekoe’s stayed high at over Rs. 400 per kg due to strong interest from Syria and Russia. Select Best varieties moved up significantly whilst the Secondaries and poorer sorts followed a similar trend.

Tippy teas also maintained interest on account of strong demand from Iran and Dubai whilst buying from the C.I.S. was moderate. Only the Ex-estate teas experience a lower market though the improved BOPF’s were in high demand. Sale of tea bags and packeted teas followed a regular pattern.

India has announced that it will remove port restriction on Sri Lanka’s tea and garment exports following the conclusion of a two-day technical level negotiation on the Comprehensive Economic Partnership Agreement (CEPA) in Colombo recently. More>>

Pepper exporters recuperate from lost Indian market, capturing other countries

Daily News / Monday, 16 April 2007

SUCCESS: Though India restricted pepper imports from Sri Lanka to 2500 MT in August last year under FTA, local pepper exporters were able to capture steady markets in USA, Europe and Middle East and enjoy with a 60 per cent price increase in the international market.

Chairman and Managing Director of Sindbad Pvt Ltd and Past Chairman of the Spices and Allied Products Producers’ and Traders’ Association (SAPPTA) and member of the Management committee M.C.M. Zarook told the Daily News that Sri Lanka was able to export nearly 1700 MT of pepper to Europe, USA and Middle East last year.

There was a 60% price increase for pepper in the international market since last August.

There was a shortage in supplies from main producing countries such as Vietnam and Brazil to the international market.

Vietnam expected 100000 MT last year but they were only able to produce 40,000 MT. Thus creating many market opportunities for local exporters and were able to secure these markets, he said.

He said that when the restriction was effected last August local pepper exports to India exceeded 2500 MT. Since August 2006 to date no pepper exports were made to India.

However, from 1st of April 2007 Indian pepper exporters were trying to activate a local supply chain to import the 2500 MT of pepper allowed for financial year 2007/2008 from Sri Lanka. More>>

China may trim tax rebates for textiles

Daily News / Monday, 16 April 2007

TAX REBATES: China may soon cut tax rebates for exports of textiles, garments and long chemical fibres in a further move to trim the country’s controversial trade surplus, the official China Securities Journal reported on Friday.

Rebates for textiles could be lowered to 9 percent from 11 percent while those for garments could fall to 9 percent from 13 percent now, the paper said, citing unidentified sources.

The authorities were likely to lower rebates for long chemical fibres to 5 percent from 9 percent, it said.

Late last month, the same paper cited unidentified sources as saying that rebates for garment exports could be lowered to 11 percent from April 15.

Last year, China lowered export tax rebates on textiles to 11 percent from 13 percent.

The National Development and Reform Commission, the nation’s top economic planner, was thrashing out details with the ministries of commerce and finance, Friday’s paper said.

The plan had been fuelling opposition from the China National Textile and Apparel Council, an industry association that has lobbied to keep tax rebates as they are, it added. More>>

Govt. initiates programme to minimise tea production cost

Daily Mirror / Monday, 16 April 2007

A programme will be launched to minimize the production cost of tea in Sri Lanka and for this purpose the contribution of the Tea Small Holders responsible for 73% of the total production will be sought, Plantation Industries Minister D.M. Jayaratne said.

Mr. Jayaratne made this statement at a discussion held with trade union officers of the Tea Small Holders Development Authority, Technological Officers Association Clerical and Allied Grade Officers Association, and Staff Officers’ Association.

The Minister said that his attention has already been drawn to the problems paced by the Tea small holder, especially the need to grant subsidies including the fertilizer subsidy.

“The attention of President Mahinda Rajapaksa’s government has been drawn to the needs of the Tea Small Holder and action has been taken to grant financial allocations for the improvement of the Tea Small Holder through the Treasury with the approval of the Cabinet” the Minister said.

He added that a number of steps have been taken under the Mahinda Chinthanaya programme to develop this field further. More>>

National Chamber leads Lankan business delegation to Malaysia

Daily Mirror / Monday, 16 April 2007

The National Chamber of Commerce of Sri Lanka (NCCSL) will arrange for a business delegation to visit Malaysia from 22 – 27th April 2007.

The necessary arrangements for meetings with the Malaysian business organizations and the Government bodies related to trade & industry are coordinated by the Sri Lankan High Commission in Malaysia.

During the visit, the delegates will interact with their counterparts in Malaysia to promote Sri Lankan products in the Malaysian market, to find suppliers of required products and services in Malaysia and study high technology applied in Malaysian industry and agriculture.

They are also expected to meet the relevant government organizations engaged in trade, industry and commerce. More>>

Kerala-Sri Lanka B2B meet

Daily Mirror / Tuesday, April 10, 2007

KOCHI: The Kerala Chamber of Commerce and Industry, in association with the Government of Sri Lanka, is organising a two-day awareness programme on Indo-Sri Lankan Free Trade Agreement and business-to-business meet at Hotel Taj Residency on April 16 and 17.

Sri Lankan Minister for Export Development and International Trade G L Peiris will lead a delegation of leading businessmen from the Federation of Chambers of Commerce and Industry of Sri Lanka. Contd.

The business-to-business meet will provide an opportunity to businessmen in Kerala to interact with businessmen from Sri Lanka.

The businessmen from Sri Lanka will concentrate on trade fields like cashew, automobiles, fisheries packaging, cinnamon oil, spices, rubber, plantations, chemicals and paint, film industry and entertainment.

Businessmen interested in participating in the B2B meet, interaction and awareness programme should register their names at the office of the Chamber of Commerce and Industry. (www.newindpress.com) More>>

EDB recognises Blue Diamonds as one of Sri Lanka’s top 6 exporters

Daily Mirror / Tuesday, April 10, 2007

The Sri Lanka Export Development Board formally confirmed and recognised Blue Diamonds Ltd as the country’s largest exporter in the gemstone industry. Blue Diamonds Ltd a member of Ceylinco Consolidated is a pioneer in the diamond cutting and polishing industry in Sri Lanka.

During the calendar year 2006, Blue Diamonds achieved an export turnover of a staggering United States Dollars Two hundred and Twenty Two million (US$.222mn) which is approximately Sri Lanka Rupees Twenty Four billion (SLRs.24bn).

The Sri Lanka Export Development Board arranged and convened a meeting with the Chairmen and CEOs of the top six organizations ranked by the EDB on the basis of export turnover, which was attended by Prof. G. L. Peiris, International Trade Minister. More>>

Ceramics industry to carve niche in world market

Daily Mirror / Tuesday, April 10, 2007

Centre of Technical Excellence launched

By Uditha Jayasinghe

With the opening of the Centre of Technical Excellence in Ceramics (CENTEC) “Research and Development” is to give the Sri Lankan ceramics industry an edge to carve a niche in the world market.

Speaking at the opening of CENTEC USAID Mission Director Rebecca Cohn gave the objective of the centre in a nutshell by saying “Establishment of this facility will benefit the industry and the national economy by improving the quality of products and the efficiency of production. It will help create new technologies that will save money and build talent in the ceramics research community.”

CENTEC was born through a partnership among Sri Lankan manufactures, suppliers, the government and universities under the auspices of the Sri Lankan Ceramics Council. Half of the Rs. 14 million project is funded by USAID with the remainder coming from the ceramics industry. It is one of eight key local industries that are being supported by USAID to increase its competitiveness in the global market. More>>

International Trade Law conference website launched

Daily Mirror / Tuesday, April 10, 2007

By Aamna Mahboob

Chief Justice Sarath N. Silva launched the website of the International Trade Law Conference on Tuesday at the Sri Lanka Law College in connection with an international trade Law conference “The Doha Development Agenda and the Future of the Multilateral Trading System”.

Speaking at the launch the Chief justice said that “the website launching and the Trade Law conference are very timely” adding that the country should know how to gain benefits out of international trade rules.

He said that trade system has to be studied in Sri Lanka, adding that the country has a pool of intelligent people which will lead it in the future.

The conference is being organized by the Sri Lanka Law College from July 30 to August 1 at the Cinnamon Grand in Colombo this year.

Eminent experts from the United States, the European Union, India and Sri Lanka will present papers at the conference. More>>

Dubai Tea Trading Centre business grows

Daily Mirror / Tuesday, April 10, 2007

The fledgling Dubai Tea Trading Centre (DTTC) recently said its 2006 volume rose to 4,300 tonnes, up by 79.1% from 2005, reflecting growing Middle East demand.

Since its inception in March 2005, the centre has stocked and traded about 6,700 tonnes of tea, despite the impact of Kenya’s drought in the first quarter of 2006.

DTTC Director Sanjay Sethi commented that prices for tea from Kenya jumped between 15 and 25% in the first half of 2006, temporarily reducing flows through Dubai.

The volume of tea handled by the centre and shipped through Dubai has been growing rapidly, with the emirate’s target markets in the Middle East and the Commonwealth of Independent States making up 44% of global tea imports. More>>

Small holdings’ dominance in tea grows

Daily Mirror / Tuesday, April 10, 2007

By Dr. N. Yogaratnam. Consultant / NIPM

The history of the progress of plantation management efforts in the tea sector in Sri Lanka can be classified into three broad phases over more than a century. The early phase under the colonial initiatives lasted till the nationalization of estates in 1975, the second phase under the native control, the “post-nationalization phase” was until 1992 and the third phase the “post-privatization phase” is now more than about 15 years with active participation of private sector in the management of state owned tea plantations. The approach during the colonial past had been for effective price stabilization strategies for a given cost of production ( COP). The “post-nationalization” period had it’s typical public sector care-free style of management filled with politically acceptable and beurocratic agendas. Despite differences among the plantation management companies, a common feature since the beginning of the post-privatization phase has been efforts to capitalize on available opportunities for minimizing unit cost of production and exploring potential outlets for increasing the net income per unit area. The economic liberalization of 1990s, also provided opportunities for changing pattern of production in that the traditional estate model began gradually giving way to smallholdings, a trend that has already become a characteristic feature of the Sri Lankan plantation economy. Tea industry assumed renewed interest in Sri Lanka after privatization of it’s management. Attempts were made by the private sector management to bring back the tea industry from the wilderness into the forefront of the economy. Global production. More>>

Brandix, MAS to prop Indian apparel sector

Daily Mirror /Monday, April 09, 2007

Ground breaking initiatives to draw new investments worth nearly US$ 2 billion

The Indian press is going to town on the boost to its apparel sector from initiates by two Sri Lankan industry leaders.

The Economic Times reported last week that world famous MAS Holdings’ proposed Special Textile Zone in Andra Pradesh will draw new investments in apparel worth US$ 700 million while another report said Sri Lanka’s biggest apparel exporter Brandix’s upcoming Apparel City in the same State would trigger investments worth US$ 1 billion.

Reports said that MAS’s planned special zone in Nellore in Andra Pradesh is to be spread over 7,000 acres. The company has already purchased land directly from the owners and has applied for a formal approval from the board of approval (BoA) for SEZs. More>>

HP Expands Suite of Desktop Computing Solutions for Businesses in Asia Pacific

Daily Mirror /Monday, April 09, 2007

Unveils the HP Compaq dx2250 Business Desktop Microtower PC designed to deliver reliability and performance

Extending its portfolio of business computing solutions, HP today introduced the HP Compaq dx2250 Business Desktop PC powered with essential features and proven technologies to help businesses across Asia Pacific run more effectively.
The HP Compaq dx2250 Business Desktop PC is a proven productivity computing solution designed to deliver reliability and performance for basic business requirements. The dx2250 is a full-featured PC with components designed and tested to commercial standards to help withstand the rigors of enterprise environments. This reliable Microtower PC comes with a compact chassis which offers basic expandability and flexibility.

“Businesses across Asia Pacific are constantly demanding enhancements to the price-performance delivered by their desktop PC,” said Joergen Jakobsen, Vice President and General Manager, Commercial Systems Unit, HP Personal Systems Group, Asia-Pacific and Japan. “With the dx2250, HP now delivers business-class technology combined with our world-class services, support and trusted partnerships, at prices comparable to traditional entry-level PCs.” More>>

Sri Lanka discusses investment options with Iran

Daily News / Friday, 6 April 2007

VISIT: Minister Dr. Sarath Amunugama met a visiting delegation of the Mostazafan Foundation of Iran on April 4 at the Ministry of Enterprise Development and Investment Promotion.

The delegation was led by Eng. Mohammed Forouzandeh, President of the Foundation who was assisted by the Iranian Ambassador to Sri Lanka Behnam Behrouz and a number of senior officials of the foundation.

Dr. Amunugama discussed with the delegation areas of co-operation such as a participation in the development of the 450 acres of reclaimed land in the Colombo Port area. Other areas of possible co-operation were in the development of the new International Airport at Hambantota as well as projects in the agriculture sector.

Secretary, Ministry of Enterprise Development and Investment Promotion, Thosapala Hewage, Sri Lanka’s Ambassador to Iran, M.M Zuhair, Chairman/Director General of the BOI Prof. Lakshman R.Watawala and senior officials of the BOI were present. More>>

Tea crop dip in February

Daily Mirror / Friday, 6 April 2007

Total tea production for February ’07 of 17.5 m/kgs reflects a decrease of 5.3 m/kgs or 23.45% compared to the corresponding figure of 22.9 m/kgs for 2006, Forbes Tea Brokers said quoting Tea Board data.

It said High growns have recorded a harvest of 3.6 m/kgs which shows a decline of 1.72 m/kgs as against 5.3 m/kgs for 2006. Mediums too at 2.9 m/kgs for the month has registered a decline of 0.69 m/kgs as against 3.6 m/kgs for February ’06. Low growns have recorded 10.7 m/kgs which indicates a decrease of 2.9 m/kgs or 21.36% as against the corresponding figure of 13.6 m/kgs for last year.

Forbes said production for January-February ’07 of 38.8 m/kgs reflects a decline of 8.9 m/kgs or 18.76% compared to 47.8 m/kgs of 2006. High grown crop intake of 8.0 m/kgs shows a decline of 3.16 m/kgs as against 11.2 m/kgs of 2006. Mediums too at 5.5 m/kgs records a decrease of 1.86 m/kgs as against 7.4 m/kgs for 2006. Low growns for the current year at 24.8 m/kgs too have shown a decrease of 3.9 m/kgs or 13.56% as against the corresponding figure of 28.7 m/kgs for 2006. More>>

Tea auctions this week

Daily Mirror / Friday, 6 April 2007

The 2.0 Mkg of Low Growns that were on offer this week, met with excellent demand. In the Leafy category, once again the OP/OPAs advanced sharply. The shotty well made Pekoes too met with a dearer market. However, the bolder varieties continued the lower trend with prices shedding several rupees. Although the select best BOP1/OP1s were only firm, the below best and the poorer sorts met with a dearer market. In the Small leaf category, the better FBOP/FF1s advanced several rupees. The below best varieties were mainly firm. However, the poorer sorts, particularly the heavier invoices advanced in value.

Two All Time Record prices were established at this week’s Low Grown sale: New Panawenna Pekoe at Rs. 405/-and Kendalanda Pekoe at Rs. 405/-.

There was excellent demand from Russia, Iran and Turkey, whilst Iraq, Jordon, Libya, Saudi Arabia and other Middle Eastern markets too lent useful support. More>>

Wooden products sector to be developed

Daily Mirror / Friday, 6 April 2007

With a view to resolve the immediate problems faced by the Wood & Wooden Product Manufacturers and Exporters, a special meeting of the EDB Advisory Committee on Wooden Products was held recently in the Auditorium of the DHPL Building at No.42, Nawam Mawatha, Colombo 2 on the instructions of Professor G.L Peiris, Minister of Export Development and International Trade.

At the invitation of Minister Peiris, Patali Champika Ranawaka, Minister of Environment Resources also participated, at the meeting.

Problems connected with marketing of Pinus, Teak, Mahogany, Grandis and Micro wood by the State Timber Corporation to wooden product manufacturers, difficulties encountered in treating Pinus wood, issuance of permits to transport wood, problems concerning export of local wood by the State Timber Corporation and the higher price the manufactures have to pay in purchasing wood, misuse of quota issued by the State Timber Corporation by some manufacturers, non-availability of wood during certain periods when the local demand for wood is more, were some of the topics highlighted and taken up for discussion at the meeting. While solutions were found to some grievances to a great extent, some issues were clarified and resolved. More>>

Tea sales averages reach record levels in March

Daily Mirror /Thursday, April 05, 2007

Forbes Tea Brokers said yesterday that tea sales average reached record levels in March.

It said the total monthly sale average for March ’07 of Rs.265.72 per kg shows a gain of Rs.62.51 per kg or 30.76% gain compared to Rs.203.21 per kg of 2006. The total High grown average of Rs.288.87 per kg reflects a gain of Rs.59.58 per kg as against Rs.229.29 per kg of 2006. Medium grown average of Rs.246.86 per kg too shows a gain of Rs.62.14 per kg as against Rs.184.72 per kg of 2006 whilst the Low growns for the month of March ’07 at Rs.263.18 per kg shows a gain of Rs.64.58 per kg as against the corresponding figure of Rs.198.60 per kg.

“It is also noteworthy that all these categories have achieved the highest ever averages including the average for the month,” Forbes said.

Commenting on the last week’s average the broker said the total weekly sale average of Rs.270.73 per kg for Sale No.13 of 27th/28th March ’07 reflects the highest weekly sale average achieved. This surpasses the previous best achieved at the Sale of 20th/21st March ’07. The total High grown average for the above sale realized Rs.285.14 per kg whilst the total Medium grown average realized Rs.243.73 per kg. More>>

FTA with Nepal on the cards – Prof. G.L.

Daily Mirror /Thursday, April 05, 2007

By Shabnam Farook

A free trade agreement between Sri Lanka and Nepal is on the cards, signalling robust growth and development for both developing nations in the Asian region.

Delivering the key note address at the International Conference on trade in services in South Asia under the theme of ‘Opportunities and risks in Liberalisation’, organized by the institute of policy studies (IPS) and the Freidrich –Elbert –Stiftung (FES), the Minister of Export Development and International Trade, Professor G.L.Peiris, said that talks are in the pipeline with the Nepalese foreign minister to prepare a free trade agreement to likes of FTA’s signed with India and Pakistan.

The inaugural session on the above theme, was intended to analyze service sector liberalization undertaken up to date in the region and highlight the opportunities and risks present from the liberalization process.

Speaking further Professor Peiris says that Sri Lanka is now planning to expand the FTA signed with India and Pakistan to the extent of a comprehensive economic partnership agreement (CEPA) which will be more depend heavily on services. More>>

Greater exporter- producer dialogue

Daily Mirror /Thursday, April 05, 2007

On the instructions of the Export Development and International Trade Minister, Professor G.L. Peiris, a special meeting to build direct relations among producers and exporters was held at the Commerce Department Auditorium.

This meeting was organized by the Sri Lanka Export Development Board in a bid to provide more benefits to producers of export items in the Agricultural and the Industrial Sectors.

Representatives of Companies in the field of Exports, Representatives of Public and Private Sector Institutions, Planters and Producers of Industrial Export Items participated in this meeting.

Problems and other maters relevant to the producers as well as the exporters were dismissed.

Development of infrastructural facilities in the field an the maximum utilization of such facilities steps to guarantee fixed and reasonable prices during the pre and post harvesting periods, steps and means to minimize crop failures and wastages and land use measures were some of the areas taken up for discussion. A number of important decisions were taken at this meeting. More>>

Brandix and Ocean Lanka in US $ 20 million joint venture

Daily News /Thursday, April 05, 2007

MOU: Sri Lanka’s apparel sector giant Brandix will collaborate with Sri Lanka’s largest knit fabric manufacturer Ocean Lanka to invest US$ 20 million in a joint venture knit fabric mill at the Brandix Apparel City (BAC) in Andhra Pradesh, India.

Ocean Lanka is a joint venture partnership of Fountain Set (Holdings) Limited, Hong Kong, Brandix and the Hirdaramani group.

A Memorandum of Understanding (MoU) signed in Colombo by Brandix CEO Ashroff Omar and HA Chung Fong, Chairman, Managing Director and Founder of the Fountain Set Group, the major shareholder in Ocean Lanka, envisages the establishment of a state-of-the art manufacturing unit.

Incorporated as Ocean India, the mill will serve the needs of apparel manufacturing units in BAC and will be the largest knit fabric mill in the South Asia region. More>>

Amunugama to make Gem and Jewellery sector glitter

Daily Mirror /Wednesday, April 04, 2007

Members of AGJI (Association of Gem & Jewellery Industry) met Enterprise Development and Investment Promotion Minister Dr. Sarath Amunugama at the Ministry recently where they discussed matters concerning the difficulties the industry is faced with.

T. Rusirupala, President of AGJI stated that most of the people engaged and involved in the gem and jewellery industry are facing a crisis. “Sri Lanka is still backward in comparison to Miyanmar and Madagascar. Potentials are enormous.” he further added.

Minister Amunugama emphasized that the government could not interfere in the business to a great extent, but could assist with the provision of benefits to the industry. “We can give incentives for jewellery products” the Minister also said. “Today we should find out the policy for the improvement of the gem and jewellery sector and not set up large institutes” the minister emphasized. “You are the people in this sector. Therefore you can prevent a crisis, you can make people aware about this industry” he further added.

During the discussion Dr. Amunugama pledged to assist the industry and put forward a Cabinet paper to remove PAL (Import Tax). More>>

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